The cryptocurrency market has suffered a loss of over $452 million in the first quarter of 2023 due to the activities of hackers and scammers. This is according to a report by De. Fi, an antivirus and app provider firm.
This figure marks a 65.23% decrease compared to the $1.3 billion lost by cryptocurrency investors during the same period in 2022.
Advice for investors
De.Fi advised investors to educate themselves on potential dangers and implement appropriate measures to protect their investments. Out of the $452 million lost, $215 million was lost in the first 20 days of March, highlighting the rapid pace at which scammers are currently operating.
Reports showed that investors trading on crypto platforms such as Euler, BonqDAO, CoinDeal, Monkey Drainer, and Platypus Finance lost $196 million, $120 million, $45 million, $16.5 million, and $8.5 million, respectively. Ethereum was the cryptocurrency that suffered the highest loss during this period, with flash loan issues costing investors $200 million out of the total amount lost.
Popular targets
Tokens proved to be the most popular targets for attack vectors this year, as they are easy to deploy and prey on the fear of missing out experienced by many new crypto investors. In terms of amounts lost, however, lending and borrowing protocols took the prize, driven by a small number of high-profile events such as Euler Finance and BonqDAO.
Also revealed was $130 million recovered by the end of the first quarter this year, falling short of the $520 million recovered in the same period in 2022. The recovery rate for Q1 2023 was put at 28.7%, compared to the 40% recovery rate recorded in the first quarter of last year.
Conclusion
This report highlights the need for investors to exercise caution and take steps to protect themselves against scams and hacks. As the cryptocurrency market continues to grow and evolve, it is crucial for investors to remain vigilant and informed about potential risks and threats.
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